Investing.com - The Australian dollar climbed against its U.S. rival during Monday’s Asian as risk appetite soared on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
In Asian trading Monday, AUD/USD soared 0.91% to 0.9331 after earlier trading as high as 0.9395. After rising 0.6% last week, the pair is likely to find support at 0.9166, the low from September 9 and resistance at 0.9253, Thursday’s high and the highest since June 19.
Riskier currencies got some relief on the Summers news. Traders are still anticipating that the Fed will formally announce tapering of its USD85 billion-per-month bond-buying program when it concludes its two-day meeting on Thursday.
However, the Fed meeting is not the first issue Aussie bulls and bears have to contend with. On Tuesday, the Reserve Bank of Australia is to release the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective. Australia is to publish data on new vehicle sales, a leading indicator of consumer confidence.
For Monday at least, all eyes are on the Summers headlines and speculation regarding who will be President Barack Obama’s next choice. Presumably, it is Fed Vice Chairwoman Janet Yellen who has a more dovish view of monetary policy than does Summers.
Part of the reason Summers reportedly withdrew from consideration is that he did not believe the U.S. Senate would confirm him. Recently, a group of 20 senators sent a letter to Obama endorsing Yellen. Prior to that, 350 economists did the same.
Elsewhere, AUD/JPY gained 0.46% to 92.28 while AUD/NZD rose 0.18% to 1.1388.
In Asian trading Monday, AUD/USD soared 0.91% to 0.9331 after earlier trading as high as 0.9395. After rising 0.6% last week, the pair is likely to find support at 0.9166, the low from September 9 and resistance at 0.9253, Thursday’s high and the highest since June 19.
Riskier currencies got some relief on the Summers news. Traders are still anticipating that the Fed will formally announce tapering of its USD85 billion-per-month bond-buying program when it concludes its two-day meeting on Thursday.
However, the Fed meeting is not the first issue Aussie bulls and bears have to contend with. On Tuesday, the Reserve Bank of Australia is to release the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective. Australia is to publish data on new vehicle sales, a leading indicator of consumer confidence.
For Monday at least, all eyes are on the Summers headlines and speculation regarding who will be President Barack Obama’s next choice. Presumably, it is Fed Vice Chairwoman Janet Yellen who has a more dovish view of monetary policy than does Summers.
Part of the reason Summers reportedly withdrew from consideration is that he did not believe the U.S. Senate would confirm him. Recently, a group of 20 senators sent a letter to Obama endorsing Yellen. Prior to that, 350 economists did the same.
Elsewhere, AUD/JPY gained 0.46% to 92.28 while AUD/NZD rose 0.18% to 1.1388.